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Principles of Neo-Schumpeterian Economics

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Author Info
Horst Hanusch () (University of Augsburg, Department of Economics)
Andreas Pyka (University of Augsburg, Department of Economics)

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Abstract

Within the last 25 years large progress has been made in Neo-Schumpeterian Economics, this branch of economic literature which deals with dynamic processes causing qualitative transformation of economies basically driven by the introduction of novelties in their various and multifaceted forms. By its very nature, innovation and in particular technological innovation is the most exponent and most visible form of novelty. Therefore it is not very surprising that Neo-Schumpeterian Economics today has its most prolific fields in the studies of innovation and learning behavior on the micro-level of an economy, the studies on industry dynamics on the meso-level and studies of innovation driven growth and competitiveness on the macro-level of the economy. From a general point of view, however, the future developmental potential of socio-economic systems i.e. innovation in a very broad understanding encompassing besides technological innovation also organizational, institutional and social innovation has to be considered as the normative principle of Neo-Schumpeterian Economics. In this sense, innovation plays a similar role in Neo-Schumpeterian Economics like prices do in Neoclassical Economics. Instead of allocation and efficiency within a certain set of constraints, Neo-Schumpeterian Economics is concerned with the conditions for and consequences of a removal and overcoming of these constraints limiting the scope of economic development. Thus, Neo-Schumpeterian Economics is concerned with all facets of open and uncertain developments in socio-economic systems. A comprehensive Neo-Schumpeterian approach therefore has to consider not only transformation processes going on e.g. on the industry level of an economy, but also on the public and monetary side of an economic system. Our contribution introduces those extensions and complements to a comprehensive Neo-Schumpeterian economic theory, and develops some guideposts in the sense of a roadmap for necessary strands of analysis in the future in order to fulfill the claim of becoming a comprehensive approach comparable to neoclassical theory.

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Paper provided by Universitaet Augsburg, Institute for Economics in its series Discussion Paper Series with number 278.

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Date of creation: Sep 2005
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Handle: RePEc:aug:augsbe:0278

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Related research
Keywords: Neo-Schumpeterian economics; industrial dynamics; public finance; financial markets;

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Find related papers by JEL classification:
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
P0 - Economic Systems - - General
G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Institutional; Evolutionary

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February. [Downloadable!] (restricted)
  2. Kurt Dopfer & John Foster & Jason Potts, 2004. "Micro-meso-macro," Journal of Evolutionary Economics, Springer, vol. 14(3), pages 263-279, 07. [Downloadable!] (restricted)
  3. Kirman, Alan, 1989. "The Intrinsic Limits of Modern Economic Theory: The Emperor Has No Clothes," Economic Journal, Royal Economic Society, vol. 99(395), pages 126-39, Supplemen. [Downloadable!] (restricted)
  4. Pier Saviotti & Andreas Pyka, 2004. "Economic development by the creation of new sectors," Journal of Evolutionary Economics, Springer, vol. 14(1), pages 1-35, January. [Downloadable!] (restricted)
  5. Jovanovic, Boyan & MacDonald, Glenn M, 1994. "The Life Cycle of a Competitive Industry," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 322-47, April. [Downloadable!] (restricted)
    Other versions:
  6. Klepper, Steven, 1997. "Industry Life Cycles," Industrial and Corporate Change, Oxford University Press, vol. 6(1), pages 145-81.
  7. Gort, Michael & Klepper, Steven, 1982. "Time Paths in the Diffusion of Product Innovations," Economic Journal, Royal Economic Society, vol. 92(367), pages 630-53, September. [Downloadable!] (restricted)
  8. Franco Malerba, 2005. "Sectoral systems of innovation: a framework for linking innovation to the knowledge base, structure and dynamics of sectors," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 14(1-2), pages 63-82, January. [Downloadable!] (restricted)
  9. Koen Frenken, 2006. "Technological innovation and complexity theory," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 15(2), pages 137-155, March. [Downloadable!] (restricted)
  10. Thomas Grebel & Andreas Pyka & Horst Hanusch, 2001. "An Evolutionary Approach to the Theory of Entrepreneurship," Discussion Paper Series 206, Universitaet Augsburg, Institute for Economics. [Downloadable!]
  11. Utterback, James M & Abernathy, William J, 1975. "A dynamic model of process and product innovation," Omega, Elsevier, vol. 3(6), pages 639-656, December. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Patrucco Pierpaolo, 2008. "Complexity and organizational change in the coordination of technological knowledge: evidence from the automobile cluster in Turin," Dipartimento di Economia "S. Cognetti de Martiis" LEI & BRICK - Laboratorio di economia dell'innovazione "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio Carlo 200808, University of Turin. [Downloadable!]
  2. Horst Hanusch & Andreas Pyka, 2006. "Manifesto for Comprehensive Neo-Schumpeterian Economics," Discussion Paper Series 289, Universitaet Augsburg, Institute for Economics. [Downloadable!]
  3. Andreas Pyka & Nigel Gilbert & Petra Ahrweiler, 2006. "Simulating Knowledge-Generation and -Distribution Processes in Innovation Collaborations and Networks," Discussion Paper Series 287, Universitaet Augsburg, Institute for Economics. [Downloadable!]
  4. Horst Hanusch & Andreas Pyka & Florian Wackermann, 2009. "A Neo-Schumpeterian Approach towards Public Sector Economics," Discussion Paper Series 306, Universitaet Augsburg, Institute for Economics. [Downloadable!]
  5. Antonelli Cristiano & Scellato Giuseppe, 2007. "Complexity and innovation: social interactions and firm level total factor productivity," Dipartimento di Economia "S. Cognetti de Martiis" LEI & BRICK - Laboratorio di economia dell'innovazione "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio Carlo 200709, University of Turin. [Downloadable!]
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